44483-026: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2 | Asian Development Bank

Uzbekistan: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2

Sovereign (Public) Project | 44483-026 Status: Active

ADB is helping Uzbekistan improve roads that will boost trade along a key transport corridor linking Asia to Europe. The second tranche of the investment program will upgrade a 75-kilometer, two-lane section of a highway running from Pungan to Namangan to four lanes. It will also provide additional financing to help complete work on 58 km of road approved under Tranche 1 of the program.

Project Name Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2
Project Number 44483-026
Country Uzbekistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2965-UZB: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2
Ordinary capital resources US$ 220.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements

The components for financing under the Loan 2965-UZB are:

(i) Road development. The output will be about 75 km of the reconstructed section of A373/4R112 highway (between Km 0 and Km 75) from Pungan to Namangan. The investment will upgrade the existing two-lane section to a four-lane section with an international design. The cost includes civil works and construction supervision consulting services.

(ii) Additional financing for Tranche 1. The output will be completion of civil works for the 58 km road improvement approved under Tranche 1.

Project Rationale and Linkage to Country/Regional Strategy The second investment program will finance the reconstruction of selected sections of CAREC Corridor 2 A380 and A373/4R112. This reconstruction will improve connectivity and road safety, and boost domestic and international trade. The second investment program fits with Strategy 2020 of the Asian Development Bank (ADB), and is aligned with the United Nations Decade of Action for Road Safety 2011-2020. The investment program is in line with the proposed Uzbekistan Transport Sector Strategy (2006-2020) and road map, as well as the CAREC Transport and Trade Facilitation Strategy and Action Plan. The investment program is included in ADB's 2012-2016 Country Partnership Strategy for Uzbekistan.
Impact Improved road connectivity, safety, and effective management for the Uzbekistan sections of CAREC Corridor 2 Road
Project Outcome
Description of Outcome Increased travel efficiency on the reconstructed A373/4R112 highway sections
Progress Toward Outcome The loan has been extended from 30 June 2016 to 30 June 2019 to allow additional time for the ongoing project activities to complete.
Implementation Progress
Description of Project Outputs Remaining sections of Project 1 on A373 completed
Status of Implementation Progress (Outputs, Activities, and Issues)

(1) Selected section of A373/4R112 highway reconstructed by the Road Fund

- The project management and construction supervision consultancy contract was awarded on 12 June 2015.

- The updated land acquisition and resettlement plan (LARP) was approved by ADB and disclosed on ADB website on 9 April 2014. The LARP Internal Monitoring Report was submitted and posted on ADB website on 15 December 2015. The Semi-annual Resettlement Monitoring Report was posted on ADB website on 20 December 2016.

- The procurement of civil works has been delayed due to changes in the detailed design caused by external factors such as construction of the new railway line and power plant adjacent to the road. Rebidding of the civil works contract has been carried out but contract award has been pending. The government is considering financing the reconstruction of the road section from government funds instead of ADB loan. As such, the government has requested partial loan cancellation, which is being processed by ADB as of 25 September 2017.

(2) Remaining sections of Project 1 on A373 completed

- The civil works contract was approximately 48% complete prior to its termination in December 2015. Arbitration is currently ongoing.

- A new civil works contract to complete the remaining works was awarded on 11 August 2016. Implementation of civil works for the remaining road sections is ongoing. The progress is approximately at 30% in September 2017.

Geographical Location Chust Tumani, Namangan, Namangan, Pop Tumani, Pungan, Turagurghon, Turaqurghon Tumani
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Project 2 does not have any major environmental impacts. An initial environmental examination has been prepared in accordance with the updated environment assessment and review framework for the investment program.
Involuntary Resettlement Project 2 traverses through four districts namely Turakurgon, Chust, Pop, and Namangan. A total of 230.5 ha land is estimated to be acquired with 320 affected households. The land acquisition is also likely to affect crop farms, orchards and trees. Consultations with stakeholders have been carried out (last consultation was done in August 2013) and will be continued during project implementation. A draft land acquisition and resettlement plan (LARP) has been prepared and disclosed to all stakeholders. The LARP has been further revised and disclosed after the finalization of detailed design.
Indigenous Peoples Project 2 is likely to have no adverse impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Discussions have been held with affected persons, khokimyat authorities and key stakeholders through public consultations with villagers, Mahalla committees, and various groups.
During Project Implementation Consultations will be continued with khokimyat authorities and key stakeholders. Public consultations with villagers, Mahalla committees, women's committee representatives and groups, and other interested parties will be carried out.
Business Opportunities
Consulting Services All consulting services to be financed under the project 2 will be procured in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement All procurement of works and goods will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Ning, Jiangbo
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
Republican Road Fund
Jamol Shukurov
Ministry of Finance 29 Istiklol Street
Tashkent, 100017,Republic of Uzbekistan
Concept Clearance -
Fact Finding -
MRM 22 Nov 2012
Approval 10 Dec 2012
Last Review Mission -
Last PDS Update 25 Sep 2017

Loan 2965-UZB

Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2012 16 Apr 2013 15 Aug 2013 30 Jun 2016 30 Jun 2019 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 265.00 Cumulative Contract Awards
ADB 220.00 10 Dec 2012 35.32 0.00 63%
Counterpart 45.00 Cumulative Disbursements
Cofinancing 0.00 10 Dec 2012 0.79 0.00 1%

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Procurement Plan